All Forum Posts by: Tim Beadle

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $127,000
Cash invested: $50,000

Purchased an 1890's duplex in historic Benton Park steps from Cherokee Street Business District. Home is owner occupied and currently being renovated. Estimated rents are $900 (1st Fl, 1bed) and $1050 (2nd Fl, 1bed + Den) based on recent comps. Units feature stainless steel appliances, in unit laundry, and 10ft+ ceilings. Looking to complete renovation in 2022 and turn over to a fully rented property with an est $22k annual gross income.

What made you interested in investing in this type of deal?

Previously lived in this neighborhood, value add property, ability to complete renovations personally reducing capital input, and neighboring properties are in good condition

How did you find this deal and how did you negotiate it?

Realtor.com - Negotiated through a realtor with a concession from purchase price.

How did you finance this deal?

FHA

How did you add value to the deal?

Both units were in poor aesthetic condition while the infrastructure was updated in 2014. New floors, countertops, appliances along with exterior deck repair and plumbing supply line replacement.

Thanks @Dave Van Horn, You never know until you ask! 

Hello bigger pockets! 

I manage a 200+ unit Class A residential multifamily building. We require each tenant to obtain renters insurance. My thought, is it possible to bring this in house as an income stream like parking/ Cable/ Wifi/ etc? I can't find much information in the short time that I have been thinking about this. 

All help is appreciated! 
Thank you, 

@Russell Brazil: I did not put in on MLS. Craigslist, Zillow, and word of mouth seem to be the biggest means of finding apartments in stl. We have hyper local neighborhood apps that I have also posted it on. @Sid Bergstresser I used postlets, it was a breeze and creates a nice ad. That is where my few leads have come from. @Chris HarpstriteThat is an awesome sign. Mine is the basic red and black one. I have received a few calls from it. 

Hello!

I renovated a 1890's home in Saint Louis, MO and I am having some trouble getting any leads for renters. It is all updated with LED lights, new paint, new insulation, new plumbing, gas stove/ oven, updated cabinets, off street parking, w/d in building, and shared stage space in the basement. It is 1100 sq feet and on the 2nd floor. My realtor suggested I list it at $975, to which I only had 1 response. I dropped the price to $895 and had someone back out on me the day the lease was to be signed. Its been vacant for nearly 1.5 months and the price is $850. I'll get maybe a lead or two a week but rarely schedule a showing. 

The apartment is currently listed on CL, Zillow, and trulia. Are there any other strategies I am missing to get this unit rented?

Thank you!

Thanks for the help guys! @Larry Turowski While the ROI is not spectacular, I am mainly looking to reduce housing expenses of my own. If I eliminate rent, I eliminate nearly 55% of my monthly expenses which is huge for me. I have been working closely with an agent over the past year getting my finances in line. I will definitely check out some REIAs though. I appreciate that!

@Michael Seeker The rents listed are only a guestimate of what I could bring in. Since it is on the West side of 55 but still technically Soulard, I didn't think I could command as much rent. The house was previously rented to one family and the seller has not disclosed the rental amount to me. It is a project house, and being a novice in this industry it is making me think I should take the safe road the first time to learn and understand what all is going to happen. I wish it was farther into Soulard so it could bring more rent, but St. Louis is a very Street by Street city. 

I appreciate all the help on this deal. The more I learn the easier it will be. Thanks!

I have two multifamily properties that I am looking at. One is more conservative and the other is more risky, but with better reward. I am a first time homeowner and landlord and want to make sure that I am well educated. The details of each property are below. I like the Russell Property, but I am not sure if it is too risky or if I should jump on it. Any advice would be great! I have funds to cover down payments and inspection fees for both houses. 

Property#1 (Conservative) $99,000

1988 sq ft Duplex in Tower Grove Heights St. Louis. 

Unit #1: 1b/1b 

Rent: $600 monthly plus utilities

Condition: Semi updated, move in ready

Upgrades required: New vanity, pocket door put back on track, new dishwasher

Unit #2: 2b/ 1b

Rent: Owner Occupied, rent 1 bedroom: $300-400/ monthly

Condition: Upgraded

No upgrades required, move in ready

Property Overall: House is in good condition. Dry basement, working plumbing & electrical, parking in rear, move in ready

Property #2 (Risky) $129,000

2532 sq ft Duplex in Soulard St. Louis

Unit #1: 2b/ 1b

Rent: $700-800/ monthly

Condition: Fair

Upgrades: Paint every room, update bathroom fixtures, Fix kitchen floor (bubbling laminate), replace ceiling fans, A/C unit needed (but already ducted)

Unit #2: 3b/1b & office

Rent: Owner Occupied & rent 2 bedrooms @ $400/ monthly per room

Condition: Fair

Upgrades: Paint rooms, Replace carpet in three rooms, chair rail &baseboard needed in kitchen, 

**This unit runs on radiant heat, no A/C ducts**

Property Overall: Needs Roof work, wall in detached garage to be replaced, Old radiant heat in 2nd unit is concerning, basement is dry, some chipping paint in 2nd unit, better location than Prop #1, No off street parking, 

Thanks for all the help! Unfortunately I have only been at this job since October 2012. I'll check with some local banks, and if nothing else just wait out the 6 months.

Thanks!

Thanks! Is there a good way to start searching or just ask around and network into one?

Hello everyone- I need your advice!

I am 26 working full time as a bartender and a part time real estate agent. I am looking to purchase an investment property, preferably a multi family unit between 2-4 units in St. Louis, MO. Unfortunately banks and lenders do not like seeing tipped incomes. I have been disqualified for a mortgage simply because I have not been at my job long enough. I make plenty of consistent tips (that are claimed on paychecks) but they still will not put it through underwriting. Is there any way around this? Any advice would be great!

I have a mid 700 credit score, meet debt to income limits, and have downpayment funds pending the price of the property.